Spotlight on the National IP Environment Past Editions versus Current Scores Trademarks, Related Rights, and Limitations Chinas overall score in relation to the total possible score has 17. Ability of trademark owners to protect their trademarks: remained the same at 42%(with a score of 14.83 out of 35 in the requisites for protection; and 18. Legal measures fifth edition). China did see a rise in score in relation to available available that provide necessary exclusive rights to damages for IP infringement as a result of a 2016 Judicial redress unauthorized uses of trademarks: High-profile nterpretation outlining enhanced damage calculations for decisions in 2016 show interest by Chinas highest court to patent infringement. China also receives points from certain new ddress key challenges in the registration of trademarks indicators added in the fifth edition, particularly for the relatively Most recently, China's Supreme Peoples Court found that strong level of transparency and public reporting by customs a Chinese sporting goods chain, Qiaodan Sports, filed the authorities on trade-related IP infringement. However, crucial Chinese-language version of Michael Jordans name in bad gaps in the areas of industrial design protection and barriers to faith. The decision recognized the"high reputation"of commercialization of i assets hold China back from a further rise Michael Jordan in China, taking into consideration evidence in score as a result of the 5 new indicators previously refused by the lower court. The Supreme Peoples Court also rejected the lower courts"definitive association General Note standard and replaced it with a broader"stable association" In 2016, the Chinese government issued a wide-ranging action standard. In cases for global brands Apple and Facebook, plan on IP, the State Council's Opinions on Accelerating the the Beijing High Court determined that the brands Establishment of a Strong IPR Country. The plan reiterated well-known status did not apply in relation to opposing proposals and ongoing efforts to enhance IP cooperation, registrations of similar marks because the applications fo promote growth of IP-intensive industries, and remove barriers these marks were filed, in the courts view before the brands to leveraging IP outside China, as well as improve the availability had achieved notoriety in China. However, in the Facebook of remedies for IP infringement and issue further guidance on IP case, the court ultimately rejected the opposed mark, given that the individual attempting to register it displayed signs of bad faith conduct Patents, Related Rights, and Limitations 21. Legal measures available that provide necessary 2. Patentability requirements: In 2016, the State Intellectual exclusive rights to redress the unauthorized use of Property Office(SIPO)issued proposed amendments to its industrial design rights: Chinese patent law provides atent examination guidelines. The amendments aim to for general exclusive rights for design patent holders. address existing uncertainty in SIPO guidance and practice However the standards for deter bility for design around the ability to submit post-filing experimental data protection are considered to be fairly low(the law provid in order to fulfill sufficiency of disclosure requirements, ited criteria for obtaining design protection and no particularly in relation to life sciences patents. The guidance substantive review takes place), leading to many low-value confirms that post-filing data is permitted if it supports a patents and a high rate of invalidations. According to local technical effect previously disclosed in the application. In legal experts, this trend has also led to a growing incidence ddition, the amendments also clarify that business methods of design patent trolls and additional costs and uncertainty and computer-implemented inventions involving software for multinational technology companies may be considered patentable subject matter as long as they produce a technical effect and other patentability criteria are met. Depending on their final form and implementation, these amendments could help strengthen the patenting environment in China 4. Pharmaceutical-related patent enforcement and resolution mechanism; and 7. Regulatory data protection term: The latest draft amendments to the Drug Registration Regulations removed provisions on patent enforcement and regulatory data protection(RDP). Patent enforcement and RDP are essential components in creating a regulatory system that promotes innovation. Without a patent enforcement system that includes an effective early dispute resolution mechanism(also known as patent linkage), it is unclear how marketing approvals for drugs will be handled before a patent expires Readthefullstudyatwww.uschamber.com/ipindex][ Read the full study at www.uschamber.com/ipindex ] Past Editions versus Current Scores China’s overall score in relation to the total possible score has remained the same at 42% (with a score of 14.83 out of 35 in the fifth edition). China did see a rise in score in relation to available damages for IP infringement as a result of a 2016 Judicial Interpretation outlining enhanced damage calculations for patent infringement. China also receives points from certain new indicators added in the fifth edition, particularly for the relatively strong level of transparency and public reporting by customs authorities on trade-related IP infringement. However, crucial gaps in the areas of industrial design protection and barriers to commercialization of IP assets hold China back from a further rise in score as a result of the 5 new indicators. General Note In 2016, the Chinese government issued a wide-ranging action plan on IP, the State Council’s Opinions on Accelerating the Establishment of a Strong IPR Country. The plan reiterated proposals and ongoing efforts to enhance IP cooperation, promote growth of IP-intensive industries, and remove barriers to leveraging IP outside China, as well as improve the availability of remedies for IP infringement and issue further guidance on IP and competition. Patents, Related Rights, and Limitations 2. Patentability requirements: In 2016, the State Intellectual Property Office (SIPO) issued proposed amendments to its patent examination guidelines. The amendments aim to address existing uncertainty in SIPO guidance and practice around the ability to submit post-filing experimental data in order to fulfill sufficiency of disclosure requirements, particularly in relation to life sciences patents. The guidance confirms that post-filing data is permitted if it supports a technical effect previously disclosed in the application. In addition, the amendments also clarify that business methods and computer-implemented inventions involving software may be considered patentable subject matter as long as they produce a technical effect and other patentability criteria are met. Depending on their final form and implementation, these amendments could help strengthen the patenting environment in China. 4. Pharmaceutical-related patent enforcement and resolution mechanism; and 7. Regulatory data protection term: The latest draft amendments to the Drug Registration Regulations removed provisions on patent enforcement and regulatory data protection (RDP). Patent enforcement and RDP are essential components in creating a regulatory system that promotes innovation. Without a patent enforcement system that includes an effective early dispute resolution mechanism (also known as patent linkage), it is unclear how marketing approvals for drugs will be handled before a patent expires. Trademarks, Related Rights, and Limitations 17. Ability of trademark owners to protect their trademarks: requisites for protection; and 18. Legal measures available that provide necessary exclusive rights to redress unauthorized uses of trademarks: High-profile decisions in 2016 show interest by China’s highest court to address key challenges in the registration of trademarks. Most recently, China’s Supreme People’s Court found that a Chinese sporting goods chain, Qiaodan Sports, filed the Chinese-language version of Michael Jordan’s name in bad faith. The decision recognized the “high reputation” of Michael Jordan in China, taking into consideration evidence previously refused by the lower court. The Supreme People’s Court also rejected the lower courts’ “definitive association” standard and replaced it with a broader “stable association” standard. In cases for global brands Apple and Facebook, the Beijing High Court determined that the brands’ well-known status did not apply in relation to opposing registrations of similar marks because the applications for these marks were filed, in the court’s view, before the brands had achieved notoriety in China. However, in the Facebook case, the court ultimately rejected the opposed mark, given that the individual attempting to register it displayed signs of bad faith conduct. 21. Legal measures available that provide necessary exclusive rights to redress the unauthorized use of industrial design rights: Chinese patent law provides for general exclusive rights for design patent holders. However, the standards for determining eligibility for design protection are considered to be fairly low (the law provides limited criteria for obtaining design protection and no substantive review takes place), leading to many low-value patents and a high rate of invalidations. According to local legal experts, this trend has also led to a growing incidence of design patent trolls and additional costs and uncertainty for multinational technology companies. Spotlight on the National IP Environment